Regarding theft in my house

Respected sir,
Me and my wife both are employees. Our house is locked between 7:30 am to 7 pm during working days. In between Maid used to come for half an hour for cleaning. Jewelry worth 2.5L and Rs.6000/- cash have been stolen from my flat. we went to police station and informed about the incident.They asked who all are staying in the house. I said me and my wife .Then they asked who is having the keys ,then we said one is with me,one is with my wife and another is with maid. Then they come to my house and checked everything and suspected the maid and checked her house also.
Then they asked me and my wife to come to the police station to lodge the FIR and we did the same. They lodged the FIR under section 381 with maid as the suspect. Next day on words they are interrogating her and people around the society.
Form the beginning the police keep on telling she has not taken.and asked me what to do..Then I told that It is my hard earned money includes my wife mangal sutra also and ask them to proceed as per their procedure.And we also stated that we don't have any proof showing that the maid has stolen the jewelry. We are just suspecting her because she is having the keys.Even so many people including the police also suspected her.
The police inquiry is continuing in between they came to my house and checked once again.On 13th day the police called me and told that we inquired her in all means and not able to find anything. But we need to arrest her as per our procedure and produce in front of magistrate.And said even though we arrest her u r gold will not be recovered from her as we finished all our inquire on her. And said she is poor and having children and her life will be spoiled.
Then I asked what to do:
Then they told me two Options:
1. Arrest her and produce in-front of magistrate ,but it will not help u to recover u r gold.
2. With draw the case.by accepting that gold is found in u r house.
initially I was stunned and confused.I asked for some time at least 2 days to consult some one. But they told u don't have even 10 mins as it is already to late.
I am already being undergoing so much tension and pressure since the day i lodged the complaint and my office life and personnel life are also being effected. So I came to the conclusion to settle the case.But Initially I was reluctant to agree for option 2 as i don't have the jewelry with me and asked for any other option. Then they told, trust me this is the best option and took me to the senior police officer probably CI .The Senior Official also told me the same thing that this is the best option and instructed the SI to do the same.
Then they took letter from me stating that the jewelry was found in the steel boxes in kitchen and It was happened by mistake.And they also take letter from maid saying that she dont have any anger on me and she will not complain further regarding this case.
Sir this is what happened in the past 15 days of my life.I am not able to concentrate on any thing including my work , my health and I am deeply disappointed and depressed with the sequence of events that has been happened. My parents who are near to the age of 55 are also feeling pressure with the sequence of events happened.
Sir I am surely come to the conclusion that I was fooled and cheated.My jewelry was stolen and on top of that they made me to agree that the same thing was found in my house. Ohh..what a stupid I am now I am not in a position to share this to any one else.
Respected Sir,could you please tell me what is next procedure and what are the consequences. I just want to come out of all these things and start a fresh. Because I am at the important juncture of my carrier.I am an Electronic circuit (VLSI) design engineer. For the first time I opened up regarding this and share all my feelings with you..
Sir, Request you to please guide me and advice me.

Indian Laws

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